What must insurance companies do when requesting an investigative report on an applicant?

When insurance companies request an investigative report on an applicant, they are required by law to notify the applicant that such a request has been made. Specifically, the notification must occur within a specified timeframe, which is often within three days. This requirement is meant to ensure transparency in the underwriting process and to protect the applicant's rights.

This notification allows the applicant to be aware that their information is being sourced from third-party entities, which may include background checks, credit reports, or other forms of personal investigation. By providing this notification, the insurer complies with legal standards governing privacy and fair treatment in the insurance process, fostering trust and encouraging open communication between the insurer and the applicant.